Zakah on rented property.
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh.
(May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked
What i would like to ask you is the following –
Suppose i buy a flat for 25 lakhs and i pay zakah on it
for the first year.After that every year should i pay zakah on the whole amount
or just on the rent i receive from it , because if every year i have to pay
zakah on the price of the flat it is hardly an asset , cos the rent we receive
from it per year will be lesser than the zakah we have to pay on it. I have
asked the same question on ISLAMONLINE and the reply was that i had to pay on
the whole amount just once and after that on the rent. I was surprised when i read
from your site in the other way.If things are like this then we muslims better
not invest in anything !!
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errors in the above statement. The forum does not change anything from
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Zakah on rented
In the name of Allah, We praise Him, seek His
help and ask for His forgiveness. Whoever Allah guides none can misguide,
and whoever He allows to fall astray, none can guide them aright. We bear
witness that there is none worthy of worship but Allah Alone, and we bear
witness that Muhammad (saws) is His slave-servant and the seal of His
‘Zakah’ is annually liable from every believer (man, woman,
or child) whose net excess assets are above the prescribed ‘nisaab’ and have
been in their possession for a period of one full calendar year.
The rent one receives from one’s invested property is
absolutely immaterial when determining the annual ‘zakah’; for ‘zakah’ is based
on the net excess assets of each believer, not on one’s annual income.
If you have bought the flat for 25-lakhs, you would indeed
be liable to pay ‘zakah’ on the market value of the flat at the end of EACH calendar
year at the rate of 2.50%.... absolutely regardless of whether you receive any
rent or not, or whether the rent received is more or less than the amount of
the liable ‘zakah’.
Your Question: If things are like this then we muslims
better not invest in anything !!
Respected sister, lets assume that a believer has a
savings of 25-lakhs cash and he/she chooses not to invest that amount into
anything. That person would still be
liable at the end of each calendar year to pay ‘zakah’ on their savings at the
rate of 2.50%.
Thus, assuming that the person does not invest his/her
25-lakhs cash, the ‘zakah’ of one whose total net excess asset is 25-lakhs cash
this year for the next ten years on his reducing asset would be:
That is precisely why the Messenger of Allah (saws) guided
the believers to invest and trade with their assets, otherwise the annual ‘zakah’
would deplete their assets over time.
Amr ibn Shuaib reported from his father from
Abdullah ibn Amr that the Messenger of Allah (saws) said: "One who becomes
the guardian of an orphan with property must trade on his behalf and not leave
it passive in order to avoid depletion of the property by ‘zakah’."
Related by Muslim.
Thus it would only be prudence that one who has a savings
should invest or trade with their assets in a product which would give them
annual returns which would at least cover their annual ‘zakah’ dues.
Respected Sister, we reiterate again, the rent one
receives from one’s invested property is absolutely immaterial when determining
the annual ‘zakah’; for the annual ‘zakah’ is based on the net excess assets of
each believer, not on one’s annual income.
Whatever written of Truth and benefit is only
due to Allah’s Assistance and Guidance, and whatever of error is of me
alone. Allah Alone Knows Best and He is
the Only Source of Strength.
Your brother and
well wisher in Islam,